Investing.com - Asian stock markets were mixed in choppy trade on Wednesday, as sustained concerns over Spain’s fiscal health and growing fears Italy will be the next euro zone country to require a bailout weighed on market sentiment.
During late Asian trade, Hong Kong's Hang Seng Index edged 0.4% higher, Australia’s ASX/200 Index dipped 0.2%, while Japan’s Nikkei 225 Index rose 0.6%.
Asian equities were broadly higher after the open, tracking sharp overnight gains from Wall Street, as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy.
However, growing concerns over rising borrowing costs in Spain and Italy, as well as jitters ahead of weekend elections in Greece, which could determine the course of the country’s future in the euro zone, weighed on investor confidence.
Spanish 10-year yields rose to 6.82% on Tuesday, a euro-era record high. Similar-maturity Italian yields increased to 6.22%, the highest since January.
Spain became the fourth euro zone nation to seek a rescue over the weekend, after Greece, Portugal and Ireland. Some investors fear it is only a matter of time before Italy becomes the next country to ask for help.
In Tokyo, the Nikkei was up, but ended off the highest levels of the session, as gains in index heavyweight Fast Retailing supported the benchmark.
The operator of Uniqlo clothing stores rose 1.85%. The retailer is still down nearly 12% since the start of the month.
Gains in heavy machinery makers also supported the market after official data showed that core machinery orders swung back to a gain in April, rising 5.7% during the month. Shares in Fanuc added 0.4%, while Denso shares climbed 0.9%.
On the downside, Canon saw shares slump 1.1% after Credit Suisse cut its price target for the shares.
Meanwhile, shares in Hong Kong were higher, but gains were limited by a sharp drop in shares of clothing retailer Esprit Holdings.
Esprit saw shares plunge 21.9%, the biggest one-day loss in 14 years, after announcing that its Chief Executive Officer Ronald van der Vis will resign for personal reasons, effective July 1.
A 0.9% increase in shares of index heavyweight HSBC Holdings contributed to gains. HSBC, which is Europe’s largest bank, commands a 15% weighting on the Hong Kong benchmark.
Across the sector, China Construction Bank shares rose 1.1%, Industrial and Commercial Bank of China added 1.2%, while insurance giants Ping An and China Life climbed 2.1% and 3.5% respectively.
Elsewhere, shares in Australia underperformed most regional equities, as shares in lenders and miners saw morning gains evaporate in afternoon trade.
ANZ Banking Group ended the session 0.95% lower, Commonwealth Bank of Australia slumped 0.6%, while Rio Tinto ended flat after being up by as much as 0.7% earlier.
On the upside, shares of Qantas Airways rose 2.3%, extending the previous day’s 10.8% gain, after an Australian Financial Review report that the airline is preparing efforts to defend against a possible hostile takeover.
Iron-ore producer Fortescue Metals Group jumped 2.85% after signing a deal to consolidate its magnetite interests with China’s Baoshan Iron & Steel.
Looking ahead, European stock markets looked set to open flat to lower, as concerns over high Spanish borrowing costs and uncertainty ahead of a closely watched Greek election were likely to weigh.
The EURO STOXX 50 futures pointed to a modest 0.1% gain, France’s CAC 40 futures dipped 0.15%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a decline of 0.15% at the open.
Later in the day, Italy was set to auction as much as EUR4.5 billion of government bonds. The euro zone was to release official data on industrial production, while Germany was to hold an auction of 10-year government bonds.
In addition, the U.S. was to release official data on retail sales and producer price inflation.
During late Asian trade, Hong Kong's Hang Seng Index edged 0.4% higher, Australia’s ASX/200 Index dipped 0.2%, while Japan’s Nikkei 225 Index rose 0.6%.
Asian equities were broadly higher after the open, tracking sharp overnight gains from Wall Street, as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy.
However, growing concerns over rising borrowing costs in Spain and Italy, as well as jitters ahead of weekend elections in Greece, which could determine the course of the country’s future in the euro zone, weighed on investor confidence.
Spanish 10-year yields rose to 6.82% on Tuesday, a euro-era record high. Similar-maturity Italian yields increased to 6.22%, the highest since January.
Spain became the fourth euro zone nation to seek a rescue over the weekend, after Greece, Portugal and Ireland. Some investors fear it is only a matter of time before Italy becomes the next country to ask for help.
In Tokyo, the Nikkei was up, but ended off the highest levels of the session, as gains in index heavyweight Fast Retailing supported the benchmark.
The operator of Uniqlo clothing stores rose 1.85%. The retailer is still down nearly 12% since the start of the month.
Gains in heavy machinery makers also supported the market after official data showed that core machinery orders swung back to a gain in April, rising 5.7% during the month. Shares in Fanuc added 0.4%, while Denso shares climbed 0.9%.
On the downside, Canon saw shares slump 1.1% after Credit Suisse cut its price target for the shares.
Meanwhile, shares in Hong Kong were higher, but gains were limited by a sharp drop in shares of clothing retailer Esprit Holdings.
Esprit saw shares plunge 21.9%, the biggest one-day loss in 14 years, after announcing that its Chief Executive Officer Ronald van der Vis will resign for personal reasons, effective July 1.
A 0.9% increase in shares of index heavyweight HSBC Holdings contributed to gains. HSBC, which is Europe’s largest bank, commands a 15% weighting on the Hong Kong benchmark.
Across the sector, China Construction Bank shares rose 1.1%, Industrial and Commercial Bank of China added 1.2%, while insurance giants Ping An and China Life climbed 2.1% and 3.5% respectively.
Elsewhere, shares in Australia underperformed most regional equities, as shares in lenders and miners saw morning gains evaporate in afternoon trade.
ANZ Banking Group ended the session 0.95% lower, Commonwealth Bank of Australia slumped 0.6%, while Rio Tinto ended flat after being up by as much as 0.7% earlier.
On the upside, shares of Qantas Airways rose 2.3%, extending the previous day’s 10.8% gain, after an Australian Financial Review report that the airline is preparing efforts to defend against a possible hostile takeover.
Iron-ore producer Fortescue Metals Group jumped 2.85% after signing a deal to consolidate its magnetite interests with China’s Baoshan Iron & Steel.
Looking ahead, European stock markets looked set to open flat to lower, as concerns over high Spanish borrowing costs and uncertainty ahead of a closely watched Greek election were likely to weigh.
The EURO STOXX 50 futures pointed to a modest 0.1% gain, France’s CAC 40 futures dipped 0.15%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a decline of 0.15% at the open.
Later in the day, Italy was set to auction as much as EUR4.5 billion of government bonds. The euro zone was to release official data on industrial production, while Germany was to hold an auction of 10-year government bonds.
In addition, the U.S. was to release official data on retail sales and producer price inflation.